I have never heard of such a large dept or financial problems. I worked for York in Europe and we made a pretty good business through the years.
I was with York one month shy of 20 years when JCI bought us out, and this is the first time I have ever heard of some large debt that could not be paid off. As far as being on "credit hold", that was usually because a local office did not have their paperwork in order, not because York could not pay their bills.

There are a lot of rumors about the demise of York, most are not true. What you need to look at are the "Golden Parachutes" that York's upper management had in place when the deal went down. For those of us that had York stock, we knew that we were not going to get rich investing in it,
but is was a solid investment. Lets face it, the dividends that the York stock was paying, was no where near what we got for that stock when JCI bought us.
JCI is many things, but stupid when it comes to money is not one of them. They saw that they were heavily over invested in their automotive division, and with the down turn in the automotive industry, they needed to even out their investments. When we were brought in to JCI for our brain washing, I mean indoctrination, they told us that they bought York because we had a much larger footprint in the global HVAC marketplace. Therefore it was a no brainer to buy York and start selling Metasys from an already established clientèle base.

For those of you that never worked for York, will never understand why there is / was such a hard time transitioning over to JCI. At York corporate, a lot of the people who ran that company on a day to day basis worked their way up the ladder. Some started in manufacturing, others in sales or a service office. There were product engineers that were second and third generation York employees. And for the most part, these people were always accessible if you needed something. In our field office, we were expected to take care of the customers needs. In other words, if their was a warranty problem, FIX IT, then we will figure out who owes for what later.
It was a great place to work.
We were spun off by Borg Warner, do you think JCI could do the same?